- Workers Are Likely To Have More Bargaining Power To Negotiate Higher Wages With Employers If They Are More Productive T 1 (38.53 KiB) Viewed 43 times
- Workers Are Likely To Have More Bargaining Power To Negotiate Higher Wages With Employers If They Are More Productive T 2 (59.85 KiB) Viewed 43 times
Workers are likely to have more bargaining power to negotiate higher wages with employers if they are more productive. there is unlimited substitution of capital for labour. they do not belong to a trade union. there is an excess supply of labour.
A minimum wage in a perfectly competitive labour market can be instituted in an attempt to exploit low-wage workers and to depress their living standards even further. which is imposed above the equilibrium wage, will lead to an excess demand of labour. will normally be imposed below the equilibrium wage. which is set above the equilibrium wage, will lead to unemployment.